Arizona Department of Housing (Department)

Arizona Housing Finance Authority (Authority)

Authority

The Arizona Department of Housing and the Arizona Housing Finance Authority were established by Laws 2001, Chapter 22. Statutory authority for the Department is found at A.R.S. §§41-3951 through 41-3957. Statutory authority for the Arizona Housing Finance Authority is found at A.R.S. §§41-3901 through 41-3912. Statutory authority for programs related to manufactured housing is found at A.R.S. §§41-4001 through 41-4049.

Function

The Arizona Department of Housing administers several programs and establishes policies and procedures to address housing issues of low and moderate income families, populations with special needs, housing affordability, and decaying housing stock. Among others, it administers the Low-Income Housing Tax Credit program, the Community Development Block Grant program, home ownership assistance programs, programs to provide housing to populations with special needs and programs related to manufactured housing.

The Department provides technical assistance and oversight for local governments, public housing authorities, tribes, social service agencies and certain qualified individuals. It is the designated state public housing agency defined by the US Housing Act of 1937 and as such, may accept federal housing assistance monies. It serves as a pass through agency, administering federal funding programs designed to promote housing and community development activities. Some of the federal stimulus monies directed to Arizona from the Housing and Economic Recovery Act of 2008 (HERA) and the American Recovery and Reinvestment Act of 2009 (ARRA) passed through the Department. The Department receives no state general funds. State Housing Trust Funds are used to provide required federal matching monies. (AZ Auditor General Report, Number 10-05)

The Arizona Housing Finance Authority was established to serve as a bonding authority and to support affordable housing programs. The Authority is governed by a seven-member board of directors, appointed by the Governor to terms of seven years. The Authority may accept and administer monies or property from federal agencies or others; enter into agreements, contract with, act as guarantor or coinsure with any federal, state or local government agency in connection with its responsibilities related to housing; and inspect any housing facility financed through its resources. If the Authority acquires title to any real property, it may hold the title temporarily and must immediately begin a process to dispose of the property for its market value. It may not accept title to real property by eminent domain (A.R.S. 41-3904).

History

In 1980, the Office of Economic Planning and Development (OEPAD) duties were expanded to provide certain housing services and to act as the state’s designated state public housing agency for purposes of accepting federal housing assistance funds. The law also authorized the Housing Finance Review board to allocate federal funds to political subdivisions and qualified participants through OEPAD, based on housing conditions and needs in the state (Laws 1980, Chapter 222). OEPAD duties were transferred to the Arizona Department of Commerce, Office of Housing Development by Laws 1984, Chapter 318.

Legislation enacted in 2001 transferred the responsibilities of the Arizona Department of Commerce, Office of Housing Development to the Office of Housing Development in the Governor’s Office effective January 1, 2002. The responsibilities were subsequently transferred to the Department of Housing, effective October 1, 2002. See Laws 2001, Chapter 22. Note: for more information on the Arizona Department of Commerce, please refer to the history for that agency.

Laws 2001, Chapter 22 also established the Arizona Housing Commission, consisting of 18 members appointed by the Governor to four-year terms. The law also established several funds, including the Housing Trust Fund, consisting of monies from unclaimed property, used for projects related to affordable housing and Housing Finance Authority programs; the Housing Development Fund, to provide funding for an affordable housing demonstration project in areas where state prison facilities exist; and the Arizona Department of Housing Program Fund used to cover administrative costs of Department programs or programs of the Arizona Housing Finance Authority. See A.R.S. §§41-3955 through 40-3957.

The same year, Laws 2001, Chapter 368 added three members to the Arizona Housing Commission and modified eligibility criteria to serve as a member.

Laws 2002, Chapter 283 transferred all powers and duties concerning bonds issued and any assets received by the former Arizona Housing Finance Review Board to the Arizona Housing Finance Authority.

Laws 2011 Chapter 28 established the Seriously Mentally Ill Housing Trust Fund, to be administered by the Director of the Arizona Department of Health Services. The law designated a portion of unclaimed property as a funding source and established reporting requirements.

Laws 2014, Chapter 229 repealed the Arizona Housing Commission.

In 2015, the responsibility to provide behavioral health services was transferred from the Arizona Department of Health Services to the Arizona Health Care Cost Containment System (AHCCCS). Administration of the Seriously Mentally Ill Housing Trust Fund was transferred to AHCCCS as well (Laws 2015, Chapter 195, effective July 1, 2016). A second measure relating to housing was enacted in 2015, allowing the SMI Housing Trust Fund to be used to provide rental assistance to persons with a serious mental illness (Laws 2015, Chapter 312).

Laws 2016, Chapter 128 abolished the Department of Fire, Building and Life Safety and divided its duties among three existing state agencies (the Department of Housing, the State Forester and the Department of Real Estate). The measure transferred the duties, responsibilities and programs of the Office of Manufactured Housing to the Department of Housing, including administration of the Mobile Home Parks Residential Landlord and Tenant Act.